Lakeland Bancorp Reports Record Full Year Results

Lakeland Bancorp Inc. - $LBAI |

Lakeland Bancorp, Inc. (LBAI) reported the following results:

  • Net Income Available to Common Shareholders in the fourth quarter of 2013 was $7.3 million, up 26% from $5.8 million for the fourth quarter of 2012. Earnings per diluted share in the fourth quarter of 2013 was $0.20 per share which equaled the diluted EPS for the same period in 2012. Return on Average Assets for the fourth quarter of 2013 was 0.88%, the Return on Average Common Equity was 8.30%, and the Return on Tangible Common Equity was 12.23%.
  • Net Income Available to Common Shareholders for the year ended December 31, 2013 was $25.0 million, or $0.75 per diluted share, an 18% increase compared to $21.1 million, or $0.76 per diluted share, for 2012. Excluding pre-tax merger related expenses of $2.8 million, Net Income Available to Common Shareholders was $27.0 million, or $0.81 per diluted share, in 2013. Return on Average Assets for 2013 was 0.80%, the Return on Average Common Equity was 7.78%, and the Return on Tangible Common Equity was 11.42%.
  • Asset quality continued to improve in the fourth quarter of 2013, as non-performing assets, which totaled $17.5 million at December 31, 2013, were 6% lower than $18.7 million at September 30, 2013, and 39% lower than $28.5 million reported at year-end 2012. The Allowance for Loan and Lease Losses at year end 2013 was 176% of non-accruing loans, compared to 103% at year-end 2012.
  • Net Interest Margin ("NIM") improved to 3.70% for the fourth quarter of 2013 compared to 3.68% in the third quarter of 2013, and 3.67% in the fourth quarter of 2012. The yield on interest-earning assets at 3.99% in the fourth quarter of 2013 was one basis point lower than 4.00% in the third quarter of 2013, while the cost of interest-bearing liabilities at 0.38% decreased by four basis points from 0.42% in the third quarter of 2013, primarily as a result of reduced deposit costs.
  • On January 28, 2014, the Company declared a quarterly cash dividend of $0.075 per common share, payable on February 18, 2014 to holders of record as of the close of business on February 10, 2014.

Thomas J. Shara, Lakeland Bancorp's President and CEO said, "2013 was another solid year for the Company. Earnings and capital ended the year at record levels, asset quality continued to improve, and the Net Interest Margin was stable. In the fourth quarter of the year, the cash dividend was increased, while earlier in 2013, we successfully completed the acquisition and merger of Somerset Hills Bancorp, expanding our footprint in the New Jersey markets."

Somerset Hills Bancorp Acquisition

As previously noted in the second quarter earnings release, the Company acquired Somerset Hills Bancorp ("Somerset Hills") on May 31, 2013. At the time of acquisition, Somerset Hills had $355.9 million in total assets, $10.4 million in investment securities, $246.4 million in loans (including $2.5 million in mortgages held for sale), and $311.8 million in deposits ($80.8 million in non-interest bearing demand deposits and $231.0 million in interest-bearing deposits) at fair value. Goodwill amounted to $22.9 million and Core Deposit Intangibles were $2.7 million. Merger related costs totaled $2.8 million in 2013.

The Company's financial statements reflect the impact of the merger from the date of acquisition, May 31, 2013, which should be considered when comparing comparable periods for balance sheet totals and net income amounts for the fourth quarter of 2013 and year-ended December 31, 2013.

Earnings

Net Interest Income

Net interest income for the fourth quarter of 2013 was $28.0 million as compared to $24.2 million for the same period in 2012, an increase of $3.8 million, or 16%. This increase was due to the improved NIM, as well as a 14% increase in interest-earning assets, resulting from the Somerset Hills' merger, as well as organic growth. NIM for the fourth quarter of 2013 was 3.70%, compared to 3.68% in the third quarter of 2013, and 3.67% reported in the fourth quarter of 2012. The yield on interest-earning assets declined 15 basis points to 3.99% in the fourth quarter of 2013 compared to 4.14% for the same period of 2012, while the cost of interest-bearing liabilities decreased 21 basis points from 0.59% in the fourth quarter of 2012 to 0.38% in the fourth quarter of 2013, reflecting the Company's management of deposit and borrowing costs.

For the year-ended 2013, net interest income totaled $104.5 million compared to $95.5 million reported for 2012, an increase of $9.0 million, or 9%. NIM for 2013 at 3.69% was one basis point lower than 3.70% for the year-ended 2012. The Company's yield on earning assets decreased 26 basis points from 4.29% for the year ended December 31, 2012, to 4.03% for 2013. The Company's cost of interest bearing liabilities decreased 30 basis points from 0.74% for 2012 to 0.44% in 2013.

Noninterest Income

Noninterest income, exclusive of gains on sales of investment securities, totaled $5.1 million for the fourth quarter of 2013, as compared to $4.7 million for the fourth quarter of 2012. Gains on investment securities totaled $333,000 for the fourth quarter of 2013, as the Company recorded a gain on the sale of an equity security. In the fourth quarter of 2012, the Company recorded $776,000 in gains on investment securities. Service charges on deposit accounts totaling $2.8 million for the fourth quarter of 2013 were 8% higher than the total reported for the same period in 2012, while commissions and fees of $1.1 million were equivalent to the total reported in the fourth quarter of 2012. Other income of $890,000 for the fourth quarter of 2013 increased by $218,000 compared to the fourth quarter of 2012. In the fourth quarter of 2013, the Company recorded a $640,000 gain on the sale of an OREO property, while in the fourth quarter of 2012 the Company recorded $275,000 in net gains on the sales of properties and $142,000 in gains on swap transactions.

Noninterest income, exclusive of gains on sales of investment securities and gain on extinguishment of debt, totaled $18.9 million for the year ended December 31, 2013 compared to $17.9 million for 2012. Gains on investment securities totaled $839,000 in 2013 as compared to $1.0 million in 2012. Service charges on deposit accounts of $10.8 million and commissions and fees of $4.6 million increased by 3%, and 2%, respectively, from the prior year period. Other income of $2.1 million was $576,000 higher in 2013, partially due to the aforementioned net gain on the sale of the OREO property.

Noninterest Expense

Noninterest expense for the fourth quarter of 2013, excluding long-term debt prepayment fees, was $20.0 million, as compared to $17.2 million for the fourth quarter of 2012. The Company recorded $683,000 in long-term debt prepayment fees in the fourth quarter of 2013 as $6.0 million in long-term debt yielding 3.99% was repaid. In the fourth quarter of 2012, there were $782,000 in long-term debt prepayment fees. Salaries and benefit expenses totaled $10.8 million for the quarter-ended December 31, 2013, increasing by $758,000 in the fourth quarter of 2013, primarily due to increased salaries and benefit costs as a result of increased staffing levels due to the Somerset Hills acquisition. Occupancy, furniture and equipment expense of $3.8 million increased by $560,000, or 17%, primarily due to increased costs at the six new branch locations acquired in the Somerset Hills acquisition, as well as increases in service agreements and depreciation costs resulting from the updating of Lakeland Bank's computer systems. Other expenses of $3.6 million increased by $1.4 million. Included in this increase was an additional $600,000 in professional fees relating to costs associated with the resignation of the Company's external accountants, which was previously disclosed in Form 8-K's filed with the SEC on December 13, 2013 and December 30, 2013. The Company's efficiency ratio for the fourth quarter of 2013 was 59.4% compared to 59.5% for the same period of 2012.

Noninterest expense for the full year ended December 31, 2013, exclusive of $2.8 million in merger-related expenses and $1.2 million in long-term debt prepayment fees were $74.7 million, compared to $66.9 million for 2012, exclusive of $782,000 in long-term debt prepayment fees, an increase of $7.8 million. Salary and benefit costs of $41.9 million increased 9%, reflecting the increased staffing levels due to the Somerset Hills acquisition, while occupancy, furniture and equipment expenses of $14.3 million increased by $2.4 million, primarily for the same reasons outlined in the three month analysis, as well as expenses incurred in 2013 resulting from the opening of a new Training and Operations Center in mid-2012. Other expenses of $11.6 million increased by $2.1 million, or 22%. Within this category, the aforementioned increase in professional fees represented $600,000 of this increase, while the remaining increase of $1.5 million reflected additional costs in various expense categories resulting from the growth of Lakeland Bank in 2013.

Financial Condition

At December 31, 2013, total assets were $3.32 billion, an increase of $399.1 million from December 31, 2012, or 14%. This includes Somerset Hills' assets of $355.9 million at the time of acquisition. Total loans were $2.47 billion, an increase of $323.1 million or 15% from $2.15 billion at year-end 2012. Somerset Hills' loans, including mortgages held for sale, totaled $246.4 million at the time of acquisition. Commercial loans, excluding loans acquired in the Somerset Hills merger, increased by $102.6 million, or 7%, in 2013. In the fourth quarter of 2013, total loans increased by $41.5 million, primarily in the commercial real estate category. Total deposits were $2.71 billion, an increase of $338.2 million, or 14%, from December 31, 2012. Somerset Hills' deposits totaled $311.8 million at the time of acquisition.

Asset Quality

In the fourth quarter of 2013, asset quality continued to improve. At December 31, 2013, non-performing assets totaled $17.5 million (0.53% of total assets) compared to $18.7 million (0.57% of total assets) at September 30, 2013 and $28.5 million (0.98% of total assets) at December 31, 2012. In the fourth quarter of 2013, the provision for loan and lease losses totaled $1.7 million, a decrease of $1.4 million, or 46%, from $3.1 million reported in the fourth quarter of 2012. For the year-ended December 31, 2013, the provision for loan and lease losses of $9.3 million was $5.6 million, or 37%, lower than last year's total. The Allowance for Loan and Lease Losses totaled $29.8 million at December 31, 2013 and represented 1.21% of total loans. In the fourth quarter of 2013, the Company had net charge offs totaling $1.6 million. In 2013, the Company had net charge-offs of $8.5 million, or 0.36% of average loans, as compared to $14.4 million, or 0.69% of average loans in 2012.

Capital

At December 31, 2013, stockholders' equity was $351.4 million and book value per common share was $9.74. As of December 31, 2013, the Company's leverage ratio was 8.90%. Tier I and total risk based capital ratios were 11.73% and 12.98%, respectively. These regulatory capital ratios exceed those necessary to be considered a well-capitalized institution under Federal guidelines.

Forward-Looking Statements

The information disclosed in this document includes various forward-looking statements (with respect to corporate objectives, trends, and other financial and business matters) that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipates", "projects", "intends", "estimates", "expects", "believes", "plans", "may", "will", "should", "could", and other similar expressions are intended to identify such forward-looking statements. Lakeland cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. The following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: changes in the financial services industry and the U.S. and global capital markets, changes in economic conditions nationally, regionally and in the Company's markets, the nature and timing of actions of the Federal Reserve Board and other regulators, the nature and timing of legislation affecting the financial services industry, government intervention in the U.S. financial system, changes in levels of market interest rates, pricing pressures on loan and deposit products, credit risks of the Company's lending and leasing activities, customers' acceptance of the Company's products and services, competition and the failure to realize anticipated efficiencies and synergies of the merger between Lakeland Bancorp, Inc. and Somerset Hills Bancorp. Any statements made by Lakeland that are not historical facts should be considered to be forward-looking statements. Lakeland is not obligated to update and does not undertake to update any of its forward-looking statements made herein.

EXPLANATION OF NON-GAAP FINANCIAL MEASURES

Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

The Company also uses an efficiency ratio that is a non-GAAP financial measure. The ratio that the Company uses excludes amortization of core deposit intangibles, expenses on other real estate owned and other repossessed assets, provision for unfunded lending commitments and, where applicable, long-term debt prepayment fees and merger related expenses. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes securities gains and losses and gain on debt extinguishment, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a better comparison of period to period operating performance.

About Lakeland Bank

Lakeland Bancorp, the holding company for Lakeland Bank, has $3.3 billion in total assets with 52 offices spanning eight northern New Jersey counties: Bergen, Essex, Morris, Passaic, Somerset, Sussex, Union and Warren. Lakeland Bank is the second largest commercial bank headquartered in the state and offers an extensive array of consumer and commercial products and services, including online and mobile banking, localized commercial lending teams, and 24-hour or less turnaround time on consumer loan applications. For more information about the full line of products and services, visit LakelandBank.com.

Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
         
  Three Months Ended December 31, Year Ended December 31,
         
  2013 2012 2013 2012
  (Dollars in thousands except per share amounts)
INCOME STATEMENT        
Net Interest Income $ 27,973 $ 24,164 $ 104,542 $ 95,513
Provision for Loan and Lease Losses (1,687) (3,124) (9,343) (14,907)
Other Noninterest Income 5,139 4,661 18,925 17,856
Gains on investment securities 333 776 839 1,049
Gain on debt extinguishment -- -- 1,197 --
Long-term debt prepayment fee (683) (782) (1,209) (782)
Merger related expenses (7) -- (2,834) --
Noninterest Expense (20,024) (17,178) (74,698) (66,891)
Pretax Income 11,044 8,517 37,419 31,838
Tax Expense (3,703) (2,688) (12,450) (10,096)
Net Income $ 7,341 $ 5,829 $ 24,969 $ 21,742
Dividends on Preferred Stock and Discount Accretion -- -- -- (620)
Net Income Available to Common Stockholders $ 7,341 $ 5,829 $ 24,969 $ 21,122
         
         
Basic Earnings Per Common Share $ 0.20 $ 0.20 $ 0.75 $ 0.76
Diluted Earnings Per Common Share $ 0.20 $ 0.20 $ 0.75 $ 0.76
Dividends per Common Share $ 0.075 $ 0.07 $ 0.29 $ 0.25
Weighted Average Shares - Basic 35,654 29,467 33,088 27,619
Weighted Average Shares - Diluted 35,856 29,566 33,240 27,692
         
SELECTED OPERATING RATIOS        
Annualized Return on Average Assets 0.88% 0.81% 0.80% 0.77%
Annualized Return on Average Common Equity 8.30% 8.30% 7.78% 8.48%
Annualized Return on Average Tangible Common Equity (2) 12.23% 12.06% 11.42% 12.85%
Annualized Return on Interest Earning Assets 3.99% 4.14% 4.03% 4.29%
Annualized Cost of Interest Bearing Liabilities 0.38% 0.59% 0.44% 0.74%
Annualized Net Interest Spread 3.61% 3.55% 3.59% 3.55%
Annualized Net Interest Margin 3.70% 3.67% 3.69% 3.70%
Efficiency ratio (2) 59.44% 59.49% 59.74% 58.33%
Stockholders' equity to total assets     10.59% 9.62%
Book value per common share (1)     $ 9.74 $ 9.45
Tangible book value per common share (1) (2)     $ 6.63 $ 6.52
Tangible common equity to tangible assets (1) (2)     7.46% 6.84%
         
ASSET QUALITY RATIOS     12/31/2013 12/31/2012
Ratio of allowance for loan and lease losses to total loans     1.21% 1.35%
Non-accruing loans to total loans     0.69% 1.30%
Non-performing assets to total assets     0.53% 0.98%
Annualized net charge-offs to average loans     0.36% 0.69%
         
SELECTED BALANCE SHEET DATA AT PERIOD-END     12/31/2013 12/31/2012
Loans and Leases     $ 2,470,289 $ 2,147,207
Allowance for Loan and Lease Losses     (29,821) (28,931)
Investment Securities     540,788 496,017
Total Assets     3,317,791 2,918,703
Total Deposits     2,709,205 2,370,997
Short-Term Borrowings     81,991 117,289
Other Borrowings     160,238 136,548
Stockholders' Equity     351,424 280,867
         
SELECTED AVERAGE BALANCE SHEET DATA For the Three Months Ended For the Year Ended
  12/31/2013 12/31/2012 12/31/2013 12/31/2012
Loans and Leases, net $ 2,427,505 $ 2,103,204 $ 2,317,158 $ 2,073,562
Investment Securities 535,210 499,455 497,017 506,042
Interest-Earning Assets 3,023,256 2,642,185 2,856,045 2,609,977
Total Assets 3,291,865 2,876,470 3,102,860 2,832,941
Non Interest-Bearing Demand Deposits 638,016 497,906 576,421 474,579
Savings Deposits 382,062 350,557 370,980 347,766
Interest-Bearing Transaction Accounts 1,450,055 1,236,294 1,341,691 1,171,318
Time Deposits 301,640 309,724 309,384 329,355
Total Deposits 2,771,773 2,394,481 2,598,476 2,323,018
Short-Term Borrowings 36,928 48,441 45,701 59,641
Other Borrowings 117,353 139,996 123,347 178,174
Total Interest-Bearing Liabilities 2,288,039 2,085,011 2,191,103 2,086,253
Stockholders' Equity 351,067 279,422 320,823 258,283
Common Stockholders' Equity 351,067 279,422 320,823 256,364
         
(1) Excludes preferred stock
(2) See supplemental information - non-GAAP financial measures
 
Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
         
  Three Months Ended December 31, Year Ended December 31,
  2013 2012 2013 2012
(dollars in thousands, except per share amounts)        
INTEREST INCOME        
Loans and fees $27,207 $24,854 $104,329 $100,513
Federal funds sold and interest bearing deposits with banks 36 22 93 51
Taxable investment securities and other 2,441 1,906 7,985 8,574
Tax exempt investment securities 461 450 1,792 1,821
TOTAL INTEREST INCOME 30,145 27,232 114,199 110,959
INTEREST EXPENSE        
Deposits 1,349 1,923 6,089 8,344
Federal funds purchased and securities sold under agreements to repurchase 3 11 39 79
Other borrowings 820 1,134 3,529 7,023
TOTAL INTEREST EXPENSE 2,172 3,068 9,657 15,446
NET INTEREST INCOME 27,973 24,164 104,542 95,513
Provision for loan and lease losses 1,687 3,124 9,343 14,907
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES 26,286 21,040 95,199 80,606
NONINTEREST INCOME        
Service charges on deposit accounts 2,785 2,590 10,837 10,504
Commissions and fees 1,090 1,090 4,585 4,491
Gains on sales of investment securities 333 776 839 1,049
Gain on debt extinguishment -- -- 1,197 --
Income on bank owned life insurance 374 309 1,410 1,344
Other income 890 672 2,093 1,517
TOTAL NONINTEREST INCOME 5,472 5,437 20,961 18,905
NONINTEREST EXPENSE        
Salaries and employee benefits 10,766 10,008 41,871 38,586
Net occupancy expense 2,153 1,958 8,074 7,089
Furniture and equipment 1,689 1,324 6,181 4,751
Stationery, supplies and postage 396 336 1,482 1,415
Marketing expense 650 388 2,088 2,034
FDIC insurance expense 509 543 2,014 2,163
Legal expense 98 356 1,032 1,236
Other real estate owned and other repossessed asset expense 9 10 24 99
Long-term debt prepayment fee 683 782 1,209 782
Merger related expenses 7 -- 2,834 --
Core deposit intangible amortization 124 -- 288 --
Other expenses 3,630 2,255 11,644 9,518
TOTAL NONINTEREST EXPENSE 20,714 17,960 78,741 67,673
INCOME BEFORE PROVISION FOR INCOME TAXES 11,044 8,517 37,419 31,838
Provision for income taxes 3,703 2,688 12,450 10,096
NET INCOME $7,341 $5,829 $24,969 $21,742
Dividends on Preferred Stock and Discount Accretion -- -- -- 620
Net Income Available to Common Stockholders $7,341 $5,829 $24,969 $21,122
EARNINGS PER COMMON SHARE        
Basic $0.20 $0.20 $0.75 $0.76
Diluted $0.20 $0.20 $0.75 $0.76
DIVIDENDS PER COMMON SHARE $0.075 $0.07 $0.29 $0.25
 
Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
     
  December 31, December 31,
ASSETS 2013 2012
(dollars in thousands) (unaudited)  
Cash and due from banks $94,205 $100,926
Federal funds sold and interest-bearing deposits due from banks 8,516 6,619
Total cash and cash equivalents 102,721 107,545
     
Investment securities available for sale, at fair value 431,106 393,710
Investment securities held to maturity; fair value of $100,394 in 2013 and $99,784 in 2012 101,744 96,925
Federal Home Loan Bank and other membership stocks, at cost 7,938 5,382
Loans held for sale 1,206 --
Loans:    
Commercial, secured by real estate 1,442,980 1,171,409
Commercial, industrial and other 213,808 216,129
Leases 41,332 26,781
Residential mortgages 432,831 423,262
Consumer and home equity 339,338 309,626
Total loans 2,470,289 2,147,207
Net deferred costs (1,273) (364)
Allowance for loan and lease losses (29,821) (28,931)
Net loans 2,439,195 2,117,912
Premises and equipment, net 37,148 33,280
Accrued interest receivable 8,603 7,643
Goodwill 109,974 87,111
Other identifiable intangible assets 2,424 --
Bank owned life insurance 55,968 46,143
Other assets 19,764 23,052
TOTAL ASSETS $3,317,791 $2,918,703
     
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:    
Noninterest bearing $600,652 $498,066
Savings and interest-bearing transaction accounts 1,812,467 1,569,139
Time deposits under $100,000 180,859 188,278
Time deposits $100,000 and over 115,227 115,514
Total deposits 2,709,205 2,370,997
Federal funds purchased and securities sold under agreements to repurchase 81,991 117,289
Other borrowings 119,000 85,000
Subordinated debentures 41,238 51,548
Other liabilities 14,933 13,002
TOTAL LIABILITIES 2,966,367 2,637,836
     
STOCKHOLDERS' EQUITY    
Common stock, no par value; authorized 70,000,000 shares; issued 36,070,286 shares at December 31, 2013 and 29,941,967 shares at December 31, 2012 364,637 303,794
Accumulated Deficit (8,538) (24,145)
Treasury shares, at cost, 0 shares at December 31, 2013 and 216,077 shares at December 31, 2012 -- (2,718)
Accumulated other comprehensive (loss) gain (4,675) 3,936
TOTAL STOCKHOLDERS' EQUITY 351,424 280,867
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,317,791 $2,918,703
 
Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
           
  For the Quarter Ended
  Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(dollars in thousands, except per share data) 2013 2013 2013 2013 2012
INCOME STATEMENT (unaudited)
Net Interest Income $ 27,973 $ 27,487 $ 25,146 $ 23,936 $ 24,164
Provision for Loan and Lease Losses (1,687) (1,879) (2,594) (3,183) (3,124)
Other Noninterest Income 5,139 4,645 4,595 4,546 4,661
Gains on investment securities 333 -- 1 505 776
Gain on debt extinguishment -- -- 1,197 -- --
Long-term debt prepayment fee (683) -- -- (526) (782)
Merger related expenses (7) (744) (1,452) (631) --
Core deposit intangible amortization (124) (123) (41) -- --
Other Noninterest Expense (19,900) (19,540) (17,900) (17,070) (17,178)
Pretax Income 11,044 9,846 8,952 7,577 8,517
Tax Expense (3,703) (3,229) (3,049) (2,469) (2,688)
Net Income Available to Common Stockholders $ 7,341 $ 6,617 $ 5,903 $ 5,108 $ 5,829
           
           
Basic Earnings Per Common Share $ 0.20 $ 0.18 $ 0.19 $ 0.17 $ 0.20
Diluted Earnings Per Common Share $ 0.20 $ 0.18 $ 0.19 $ 0.17 $ 0.20
Dividends Per Common Share $ 0.075 $ 0.07 $ 0.07 $ 0.07 $ 0.07
Weighted Average Shares - Basic 35,654 35,512 31,527 29,563 29,467
Weighted Average Shares - Diluted 35,856 35,736 31,618 29,625 29,566
           
SELECTED OPERATING RATIOS          
Annualized Return on Average Assets 0.88% 0.81% 0.79% 0.72% 0.81%
Annualized Return on Average Common Equity 8.30% 7.64% 7.76% 7.33% 8.30%
Annualized Return on Tangible Common Equity (1) 12.23% 11.39% 11.31% 10.59% 12.06%
Annualized Net Interest Margin 3.70% 3.68% 3.68% 3.71% 3.67%
Efficiency ratio (1) 59.44% 59.98% 59.70% 59.85% 59.49%
Common stockholders' equity to total assets 10.59% 10.53% 10.46% 9.76% 9.62%
Tangible common equity to tangible assets (1) 7.46% 7.36% 7.24% 6.98% 6.84%
Tier 1 risk-based ratio 11.73% 11.64% 11.53% 11.60% 11.52%
Total risk-based ratio 12.98% 12.89% 12.78% 12.85% 12.77%
Tier 1 leverage ratio 8.90% 8.84% 9.43% 8.77% 8.62%
Book value per common share $ 9.74 $ 9.70 $ 9.55 $ 9.51 $ 9.45
Tangible book value per common share (1) $ 6.63 $ 6.55 $ 6.39 $ 6.59 $ 6.52
           
(1) See Supplemental Information - Non GAAP financial measures
 
Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
           
  For the Quarter Ended
  Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(dollars in thousands) 2013 2013 2013 2013 2012
  (unaudited)
SELECTED BALANCE SHEET DATA AT PERIOD-END        
Loans and Leases $ 2,470,289 $ 2,428,750 $ 2,447,644 $ 2,171,456 $ 2,147,207
Allowance for Loan and Lease Losses (29,821) (29,757) (29,626) (29,623) (28,931)
Investment Securities 540,788 521,229 500,204 472,479 496,017
Total Assets 3,317,791 3,299,300 3,262,411 2,907,969 2,918,703
Total Deposits 2,709,205 2,708,454 2,672,859 2,388,675 2,370,997
Short-Term Borrowings 81,991 110,525 116,627 94,315 117,289
Other Borrowings 160,238 117,548 117,548 126,548 136,548
Stockholders' Equity 351,424 347,525 341,109 283,877 280,867
           
Loans and Leases          
Commercial real estate $ 1,442,980 $ 1,398,435 $ 1,394,698 $ 1,214,467 $ 1,171,409
Commercial, industrial and other 213,808 214,877 234,022 211,078 216,129
Leases 41,332 37,845 33,330 28,190 26,781
Residential mortgages 432,831 437,788 445,584 412,006 423,262
Consumer and Home Equity 339,338 339,805 340,010 305,715 309,626
Total loans $ 2,470,289 $ 2,428,750 $ 2,447,644 $ 2,171,456 $ 2,147,207
           
Deposits          
Noninterest bearing $ 600,652 $ 623,562 $ 600,868 $ 521,045 $ 498,066
Savings and interest-bearing transaction accounts 1,812,467 1,770,299 1,739,943 1,566,421 1,569,139
Time deposits under $100,000 180,859 190,996 194,666 184,356 188,278
Time deposits $100,000 and over 115,227 123,597 137,382 116,853 115,514
Total deposits $ 2,709,205 $ 2,708,454 $ 2,672,859 $ 2,388,675 $ 2,370,997
           
           
SELECTED AVERAGE BALANCE SHEET DATA        
Loans and Leases, net $ 2,427,505 $ 2,435,658 $ 2,264,713 $ 2,136,254 $ 2,103,204
Investment Securities 535,210 506,263 470,018 475,823 499,455
Interest-Earning Assets 3,023,256 2,987,408 2,765,229 2,642,662 2,642,185
Total Assets 3,291,865 3,243,997 3,001,360 2,868,011 2,876,470
Non Interest-Bearing Demand Deposits 638,016 620,499 542,976 502,214 497,906
Savings Deposits 382,062 374,141 369,703 357,709 350,557
Interest-Bearing Transaction Accounts 1,450,055 1,403,227 1,284,233 1,226,112 1,236,294
Time Deposits 301,640 322,371 311,230 302,159 309,724
Total Deposits 2,771,773 2,720,238 2,508,142 2,388,194 2,394,481
Short-Term Borrowings 36,928 47,702 48,652 49,641 48,441
Other Borrowings 117,353 117,559 125,268 133,449 139,996
Total Interest-Bearing Liabilities 2,288,039 2,265,000 2,139,086 2,069,069 2,085,011
Stockholders' Equity 351,067 343,482 304,950 282,796 279,422
 
Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
           
  For the Quarter Ended
  Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(dollars in thousands) 2013 2013 2013 2013 2012
  (unaudited)
AVERAGE ANNUALIZED YIELDS (taxable equivalent basis)          
Assets:          
Loans and leases 4.45% 4.45% 4.49% 4.63% 4.70%
Taxable investment securities and other 2.12% 1.87% 1.82% 1.70% 1.78%
Tax-exempt securities 3.83% 3.74% 3.67% 3.71% 3.86%
Federal funds sold and interest-bearing cash accounts 0.24% 0.24% 0.22% 0.17% 0.22%
Total interest-earning assets 3.99% 4.00% 4.04% 4.11% 4.14%
Liabilities:          
Savings accounts 0.05% 0.05% 0.06% 0.07% 0.10%
Interest-bearing transaction accounts 0.23% 0.27% 0.30% 0.32% 0.36%
Time deposits 0.60% 0.64% 0.70% 0.81% 0.91%
Borrowings 2.13% 2.06% 2.13% 2.12% 2.43%
Total interest-bearing liabilities 0.38% 0.42% 0.47% 0.51% 0.59%
Net interest spread (taxable equivalent basis) 3.61% 3.58% 3.58% 3.60% 3.55%
Annualized Net Interest Margin (taxable equivalent basis) 3.70% 3.68% 3.68% 3.71% 3.67%
Annualized Cost of Deposits 0.19% 0.22% 0.25% 0.28% 0.32%
           
ASSET QUALITY DATA          
Allowance for Loan and Lease Losses          
Balance at beginning of period $ 29,757 $ 29,626 $ 29,623 $ 28,931 $ 28,669
Provision for loan losses 1,687 1,879 2,594 3,183 3,124
Net Charge-offs (1,623) (1,748) (2,591) (2,491) (2,862)
Balance at end of period $ 29,821 $ 29,757 $ 29,626 $ 29,623 $ 28,931
           
Net Loan Charge-offs (Recoveries)          
Commercial real estate $ 928 $ 749 $ 1,778 $ 1,350 $ 1,945
Commercial, industrial and other 100 367 450 147 35
Leases (2) 21 42 24 264
Home equity and consumer 244 494 196 406 289
Real estate - mortgage 353 117 125 564 329
Net charge-offs $ 1,623 $ 1,748 $ 2,591 $ 2,491 $ 2,862
           
Nonperforming Assets          
Commercial real estate $ 8,528 $ 7,506 $ 9,209 $ 12,522 $ 14,542
Commercial, industrial and other 88 184 797 1,203 1,476
Leases -- -- -- -- 32
Home equity and consumer 2,175 2,819 2,921 2,838 3,197
Real estate - mortgage 6,141 5,996 6,840 8,481 8,733
Total non-accruing loans 16,932 16,505 19,767 25,044 27,980
Property acquired through foreclosure or repossession 520 2,154 337 715 529
Total non-performing assets $ 17,452 $ 18,659 $ 20,104 $ 25,759 $ 28,509
           
Loans past due 90 days or more $ 1,997 $ 2,484 $ 1,620 $ 1,752 $ 1,437
Loans restructured and still accruing $ 10,289 $ 13,241 $ 12,538 $ 9,012 $ 7,336
           
Ratio of allowance for loan and lease losses to total loans 1.21% 1.23% 1.21% 1.36% 1.35%
Non-performing loans to total loans 0.69% 0.68% 0.81% 1.15% 1.30%
Non-performing assets to total assets 0.53% 0.57% 0.62% 0.89% 0.98%
Annualized net charge-offs to average loans 0.27% 0.29% 0.46% 0.47% 0.54%
 
Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(unaudited)
           
           
  At or for the Quarter Ended,
  Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(dollars in thousands, except per share amounts) 2013 2013 2013 2013 2012
Calculation of tangible book value per common share          
Total common stockholders' equity at end of period - GAAP $ 351,424 $ 347,525 $ 341,109 $ 283,877 $ 280,867
Less:          
Goodwill 109,974 110,381 110,381 87,111 87,111
Other identifiable intangible assets, net 2,424 2,548 2,671 -- --
Total tangible common stockholders' equity at end of period - Non- GAAP $ 239,026 $ 234,596 $ 228,057 $ 196,766 $ 193,756
           
Shares outstanding at end of period 36,070 35,823 35,701 29,859 29,726
           
Book value per share - GAAP $ 9.74 $ 9.70 $ 9.55 $ 9.51 $ 9.45
           
Tangible book value per share - Non-GAAP $ 6.63 $ 6.55 $ 6.39 $ 6.59 $ 6.52
           
           
Calculation of tangible common equity to tangible assets          
Total tangible common stockholders' equity at end of period - Non- GAAP $ 239,026 $ 234,596 $ 228,057 $ 196,766 $ 193,756
           
Total assets at end of period $ 3,317,791 $ 3,299,300 $ 3,262,411 $ 2,907,969 $ 2,918,703
Less:          
Goodwill 109,974 110,381 110,381 87,111 87,111
Other identifiable intangible assets, net 2,424 2,548 2,671 -- --
Total tangible assets at end of period - Non-GAAP $ 3,205,393 $ 3,186,371 $ 3,149,359 $ 2,820,858 $ 2,831,592
           
Common equity to assets - GAAP 10.59% 10.53% 10.46% 9.76% 9.62%
           
Tangible common equity to tangible assets - Non-GAAP 7.46% 7.36% 7.24% 6.98% 6.84%
           
Calculation of return on average tangible common equity          
Net income - GAAP $ 7,341 $ 6,617 $ 5,903 $ 5,108 $ 5,829
           
Total average common stockholders' equity 351,067 343,482 304,950 282,796 279,422
Less:          
Average goodwill 110,376 110,381 94,783 87,111 87,111
Average other identifiable intangible assets, net 2,496 2,624 894 -- --
Total average tangible common stockholders' equity - Non - GAAP $ 238,195 $ 230,477 $ 209,273 $ 195,685 $ 192,311
           
Return on average common stockholders' equity - GAAP 8.30% 7.64% 7.76% 7.33% 8.30%
           
Return on average tangible common stockholders' equity - Non-GAAP 12.23% 11.39% 11.31% 10.59% 12.06%
           
Calculation of efficiency ratio          
Total non-interest expense $ 20,714 $ 20,407 $ 19,393 $ 18,227 $ 17,960
Less:          
Amortization of core deposit intangibles (124) (123) (41) -- --
Other real estate owned and other repossessed asset (expense) income (9) 2 2 (19) (10)
Long-term debt prepayment fee (683) -- -- (526) (782)
Merger related expenses (7) (744) (1,452) (631) --
Provision for unfunded lending commitments, net (63) (121) (6) 135 124
Non-interest expense, as adjusted $ 19,828 $ 19,421 $ 17,896 $ 17,186 $ 17,292
           
Net interest income $ 27,973 $ 27,487 $ 25,146 $ 23,936 $ 24,164
Total noninterest income 5,472 4,645 5,793 5,051 5,437
Total revenue 33,445 32,132 30,939 28,987 29,601
Plus: Tax-equivalent adjustment on municipal securities 248 248 237 232 242
Less:          
Gains on debt extinguishment -- -- (1,197) -- --
Gains on sales investment securities (333) -- (1) (505) (776)
Total revenue, as adjusted $ 33,360 $ 32,380 $ 29,978 $ 28,714 $ 29,067
           
Efficiency ratio - Non-GAAP 59.44% 59.98% 59.70% 59.85% 59.49%
 
Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(unaudited)
     
  For the Year-Ended,
  December 31, December 31,
(dollars in thousands, except per share amounts) 2013 2012
Calculation of return on average tangible common equity    
Net income - GAAP $ 24,969 $ 21,742
     
Total average common stockholders' equity $ 320,823 $ 256,364
Less:    
Average goodwill 100,753 87,111
Average other identifiable intangible assets, net 1,513 --
Total average tangible common stockholders' equity - Non GAAP $ 218,557 $ 169,253
     
Return on average common stockholders' equity - GAAP 7.78% 8.48%
     
Return on average tangible common stockholders' equity - Non-GAAP 11.42% 12.85%
     
Calculation of efficiency ratio    
Total non-interest expense $ 78,741 $ 67,673
Less:    
Amortization of core deposit intangibles (288) --
Other real estate owned and other repossessed asset expense (24) (99)
Long-term debt prepayment fee (1,209) (782)
Merger related expenses (2,834) --
Provision for unfunded lending commitments (55) (93)
Non-interest expense, as adjusted $ 74,331 $ 66,699
     
Net interest income $ 104,542 $ 95,513
Noninterest income 20,961 18,905
Total revenue 125,503 114,418
Plus: Tax-equivalent adjustment on municipal securities 965 981
Less:    
Gains on investment securities (839) (1,049)
Gains on extinguishment of debt (1,197) --
Total revenue, as adjusted $ 124,432 $ 114,350
     
Efficiency ratio - Non - GAAP 59.74% 58.33%
     
     
     
     
     
     
(dollars in thousands, except per share amounts) Including Merger Excluding Merger
Reconciliation of Earnings Per Share - December 31, 2013 Related Expenses Related Expenses
  $ 24,969 $ 24,969
     
Merger Related Expenses:    
Tax Deductible - $1,652,000 net of tax -- 978
Non Tax Deductible - $1,182,000 -- 1,182
Net Effect of Merger Related Expenses $ -- $ 2,160
Net Income Available to Common Shareholders ex-Merger Related Expenses $ 24,969 27,129
Less: Earnings Allocated to Participating Securities (178) (178)
  $ 24,791 $ 26,951
     
Weighted Average Shares -Basic 33,088 33,088
Weighted Average Shares -Diluted 33,240 33,240
     
Basic Earnings Per Common Share $ 0.75 $ 0.81
Diluted Earnings Per Common Share $ 0.75 $ 0.81

 

 

Contact:
Thomas J. Shara
President & CEO
Joseph F. Hurley
EVP & CFO
973-697-2000

 

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Companies

Symbol Name Price Change % Volume
LBAI Lakeland Bancorp Inc. 17.75 -0.10 -0.56 86,397
BWLVF Bowleven Plc Ord 0.28 0.00 0.00 0

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